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RM

Regional ManagementNYSE:RM Stock Report

Last Price

US$50.84

Market Cap

US$503.9m

7D

-6.6%

1Y

64.4%

Updated

22 Jan, 2022

Data

Company Financials +
RM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends3/6

RM Stock Overview

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders.

Regional Management Competitors

Nelnet

NYSE:NNI

US$3.4b

FirstCash Holdings

NasdaqGS:FCFS

US$2.8b

LendingClub

NYSE:LC

US$2.1b

Enova International

NYSE:ENVA

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Regional Management
Historical stock prices
Current Share PriceUS$50.84
52 Week HighUS$67.60
52 Week LowUS$26.61
Beta1.29
1 Month Change-11.12%
3 Month Change-6.13%
1 Year Change64.37%
3 Year Change89.00%
5 Year Change105.41%
Change since IPO209.06%

Recent News & Updates

Shareholder Returns

RMUS Consumer FinanceUS Market
7D-6.6%-7.2%-6.1%
1Y64.4%9.3%4.2%

Return vs Industry: RM exceeded the US Consumer Finance industry which returned 9.3% over the past year.

Return vs Market: RM exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is RM's price volatile compared to industry and market?
RM volatility
RM Average Weekly Movement5.6%
Consumer Finance Industry Average Movement7.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: RM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19871,542Rob Beckhttps://www.regionalmanagement.com

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” in more than 340 branch locations in 13 states across the United States. Most of its loan products are secured, and each is structured on a fixed-rate, fixed-term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty.

Regional Management Fundamentals Summary

How do Regional Management's earnings and revenue compare to its market cap?
RM fundamental statistics
Market CapUS$503.92m
Earnings (TTM)US$82.26m
Revenue (TTM)US$396.22m

6.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RM income statement (TTM)
RevenueUS$396.22m
Cost of RevenueUS$82.71m
Gross ProfitUS$313.51m
ExpensesUS$231.26m
EarningsUS$82.26m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)8.30
Gross Margin79.13%
Net Profit Margin20.76%
Debt/Equity Ratio349.1%

How did RM perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Regional Management undervalued compared to its fair value and its price relative to the market?

6.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RM ($50.84) is trading above our estimate of fair value ($44.09)

Significantly Below Fair Value: RM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RM's PE Ratio (6.1x) is in line with the US Consumer Finance industry average.

PE vs Market: RM is good value based on its PE Ratio (6.1x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: RM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RM is overvalued based on its PB Ratio (1.8x) compared to the US Consumer Finance industry average (1.4x).


Future Growth

How is Regional Management forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RM's earnings are forecast to decline over the next 3 years (-12.7% per year).

Earnings vs Market: RM's earnings are forecast to decline over the next 3 years (-12.7% per year).

High Growth Earnings: RM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RM's revenue (12.2% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: RM's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RM's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has Regional Management performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RM has high quality earnings.

Growing Profit Margin: RM's current net profit margins (20.8%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: RM's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: RM's earnings growth over the past year (193.1%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: RM earnings growth over the past year (193.1%) exceeded the Consumer Finance industry 122.5%.


Return on Equity

High ROE: Whilst RM's Return on Equity (29.65%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Regional Management's financial position?


Financial Position Analysis

Short Term Liabilities: RM's short term assets ($1.2B) exceed its short term liabilities ($36.1M).

Long Term Liabilities: RM's short term assets ($1.2B) exceed its long term liabilities ($1,000.0M).


Debt to Equity History and Analysis

Debt Level: RM's net debt to equity ratio (345.6%) is considered high.

Reducing Debt: RM's debt to equity ratio has increased from 239.5% to 349.1% over the past 5 years.

Debt Coverage: RM's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: RM's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is Regional Management current dividend yield, its reliability and sustainability?

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RM's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: RM's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.61%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether RM's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RM's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.3%), RM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RM's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Rob Beck (57 yo)

1.83yrs

Tenure

US$2,800,893

Compensation

Mr. Robert William Beck, also known as Rob, serves as President, Chief Executive Officer and Director at Regional Management Corp. since March 26, 2020 and served as its Executive Vice President and Chief...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.80M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: RM's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Regional Management Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Regional Management Corp.
  • Ticker: RM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: US$503.915m
  • Shares outstanding: 9.91m
  • Website: https://www.regionalmanagement.com

Number of Employees


Location

  • Regional Management Corp.
  • 979 Batesville Road
  • Suite B
  • Greer
  • South Carolina
  • 29651
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:29
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.